Expect problems in terms of gold loan companies to be under control: South Indian Bank

VG Mathew

MD & CEO | South Indian Bank

• Expect problems in terms of gold loan companies to be under control: South Indian Bank

• We expect to close at 18-20% loan growth this year: VG Mathew, South Indian Bank

• See 20% loan book growth in FY18 driven by retail portfolio: South Indian Bank

In an interview to CNBC-TV18, VG Mathew, MD & CEO, South Indian Bank spoke about the results and his outlook for the company and the fineprint of their Q2 earnings.

Massive provisions have been made on diminution in value of security receipts of over Rs 400 crore, which is entirely one-off, he said.

We have sold Rs 1,176 crore of stressed assets to asset reconstruction company (ARC) in March 2017. There is no more stress in the large corporate accounts, he added.

There is no pipeline of large corporate accounts under stress now, said Mathew.

Four accounts worth Rs 760 crore facing cases in National Company Law Tribunal (NCLT), he further mentioned.

Slippage trend has been on a downward trend for two quarters, he said.

On the micro, small & medium Enterprises (MSME) lot, goods and services tax (GST) hasn’t been an issue. The problem that has come up is that one or two of smaller gold companies have suffered little bit in terms of demonetisation. These are all temporary things and they will be able to come back, Mathew said.